Share India Securities – Multibagger Stock Analysis 2022

In this article we can analyze Share India Securities as a Potential Multibagger Stock as on 2022 October.

CompanyWebsiteLocationLeadersHighlightsAwards
ProductsP&LPositivesNegativesChecklistSummary

Share India Securities

Share India Securities is a 28+ year company focused on Algorithmic Trading in Indian Stock Market. Mr. Parveen Gupta is the current Chairman & Managing Director of Share India Securities.

The company holds 5% market share in the Options Trading segment. The segments of serivce include Currency Trading, Currency Derivatives, Commodities F&O, DP Certification, Mutual Fund Advisory, Insurance etc.

The company is ambitious about growth & aggressivly acquiring growth stock brokers & technology companies to add the speed to growth.

share india securities mulitbagger

Website

https://www.shareindia.com

Location

Share India Securities is having Corporate Office in Noida with 850+ branches across the country.

share india securities mulitbagger
Branch Locations of Share India Securities

Leaders

Parveen Gupta as Chairman and Managing Director. He is veteran in stock market with 30 years of experience.

Kamlesh Shah serves as Managing Director. He has 26 years of experience in Financial Markets, Legal & Regulatory compliance.

Sachin Gupta is the CEO of Share India Securities. He is a young leader who is behind the core growth of the company through cutting edge technologies for trading.

Highlights

Company is highly technology driven, acquired 2 tech companies, have 120+ engineers, Focusing on retail segment for growth purpose, Diversifying globally, Maintaining strong financials & Entering into new NBFC roadlines.

share india securities mulitbagger
Key Highlights of Share India Securities
share india securities mulitbagger
Key Numbers of Share India Securities

Subsidiaries

Share India Securities have the following subsidiaries:

  • Share India Commodity Brokers Pvt. Ltd.
  • Share India Capital Services Pvt. Ltd.
  • Share India Fincap Pvt. Ltd.
  • Share India Global Pvt. Ltd.
  • Share India Smile Foundation Pvt. Ltd.
  • Share India Insurance Brokers Pvt. Ltd.
  • Share India IFSC Pvt. Ltd.
  • Total Securities Pvt. Ltd.
  • Total Securities Overseas Pvt. Ltd.
  • Total Commodities Pvt. Ltd.
  • Algowire Trading Technologies Pvt. Ltd.
  • Utrade Solutions Pvt. Ltd.

Awards

Company was recognized by following Awards. This serves as foactors of Niche Quality & Economic Moat for the company. Traders & Inestors tends to continue with same Broking & Software partner due to the High Switching costs to new broker & applications.

Top 10 Industry Volume Providers in F&O

Top Members – Index Derivatives

Products & Services

Delivery Trading service provided where the customer can buy & hold shares for long term. Company earns brokerage through this service.

Intraday Trading service provided where the customer can buy & sell share on the same trading day. Company earns brokerage through this service.

Futures & Options Trading service provided where the buyer & seller agrees for a stock price in future date. Company earns brokerage through this service.

IPO service provided where Share India Securities helps companies raise capital through stock market listing.

NBFC where retail customers are offered SME Loans, Personal Loans, Vehicle Loans, Business Loans, Commercial Vehicle Loans based on collaterals & hypothecation. The Loan Book Grown to Rs. 1.93 Billion in the current financial year.

Demat Account service where Share India Securities provide Demataerialization of Shares for customers & charge Management Fee annual basis. NSDL & CDSL based demat formats supported.

Commodity Trading service provided by Share India Securities where commodity risk information, commodity futures and options, trading facitilities provided.

Insurance Broking service was started during 2019 with 35+ insurance companies products including ICICI Prudential, LIC, HDFC Life & SBI General Insurance catered. This is helping to leverage the exisitng clientbase & cusstomer infrastructure of Share India Securities.

image 14
Segment-wise Market Share of Share India Securities

Profit & Loss

Profit & Loss statement witnessed 30% CAGR for past 3 years. The Revenue is increasing 50-100% levels for the past 5 years (while current financial year displaying only 20% increase). the Net Profit margin is above 25% which is good compared to industry avearge.

share india securities mulitbagger
Profit & Loss Statement of Share India Securities

Expansions

Share India Securities is on High-growth Expansion plans:

  • R&D in Trading Technology Innovation
  • AI/ML Integrations to Software Systems
  • Algorithmic Trading Integrations
  • Internation Expansion through Subsidiaries
  • Retail Expansion through Trading, NBFC & Insurance business
  • Partnering with Start-ups in Broker Business

Positives

  • Share India Securities is having 30% CAGR Growth for the past 5 years. Management is Ambitous about Growth & Focusing on product expansions & location expansions including International arena.
  • Company entering nee segment of Personal Loans & NBFC. This would reflect in Top-line boost in upcoming years.
  • Share India Securities set up Foreign subsidieary named Share India Global which allow Strategy based Tradingin in Singapore markets.
  • Company is highly focused on updating to latest Technologies like Artificial Intelligence (AI), Machine Learning(ML), Algorithm based Trading into own Trading systems.
  • Retail Expansion plans underway through backend infrastrucutre investing & introducing new inudstry leading products including Front-End AI/ML platforms. uTrade Solutions investment by Share India Securities will help in multi-asset trading with comprehensive user & risk management.
  • Full stack trading technology systems provided with AMI/ML capabilities & Algorithmic Trading which is new trend in market.
  • Robust acquisitions & expansions – with most recent acquisitions of Algowire Trading Technologies & uTrade Solutions strengthening the AI, ML & Tech capacities of Share India securities.
  • Value Investing parameters supporting Share India Securities:
    • PE Ratio is low at 20
    • Intrinsic Value Discount above 80% based on 3 Year data
    • Interest Coverage Ratio at 10
    • ROE & ROCE are very good above 55%
    • Net Profit Margin 25% maintained for 5 years history
share india securities mulitbagger
Core Values of Share India Securities

Negatives

  • The share market is highly regulatory, political & economic controlled enviornment. Negative economic downturns like Pandemic Or political uprisings can impact financial serice.
  • Competition based Marginal-corrossion is a Noticable threat to the company. New market players are entering every week and this stress the boottom-line to invest on new technologies & customer loyalty strategies.
  • Current Year growth is Slowed down
  • Company is slightly Overvalued – Book Value Ratio 8X, PE Ratio at 20
  • Debt Equity Ratio increased to 0.45 levels while the Interest Coverage Ratio stands at 10X to provide ample safety
  • Promoter Holdings decreaed 13% in the past 3 years.
  • Pledged Holdings increased to 24%

Warren Buffett Checklist

ParameterValue
Economic MoatGood
GrowthGood
ValuationModerate
DebtBad
IntegrityGood
Warren Buffett Checklist based on Value Investing

Summary

As per Value Investing principles the company is having Mulitbagger Properties. It can give a 300-500% Returns for a 5 Year period of investing with Incremental Increase during bear market times.

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